Nvidia News
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And to remind everyone. Nvidia not only took a huge hit last Q(5.5B), they have about $5B in inventory just sitting around. The accounting will be a reversal of the inventory provision +$5B+ PLUS the revenue generated from renewed sales, +$5B, probably next quarter. Will we see a monster guide for Q2.Likely. Something like +$13B top line QoQ and a huge margin improvement from the provision. With the current quarterly cadence of +$8B excluding China we can expect actual Q2 revenue of circa $60B and earnings of at least $32B
@Adam-Kay said in Nvidia News:
And to remind everyone. Nvidia not only took a huge hit last Q(5.5B), they have about $5B in inventory just sitting around. The accounting will be a reversal of the inventory provision +$5B+ PLUS the revenue generated from renewed sales, +$5B, probably next quarter. Will we see a monster guide for Q2.Likely. Something like +$13B top line QoQ and a huge margin improvement from the provision. With the current quarterly cadence of +$8B excluding China we can expect actual Q2 revenue of circa $60B and earnings of at least $32B
Sorry to be fick but I thought that NVidia was selling every scrap of whatever they could make, and had a backfilled order book for 18 months or more? If that's the case then how can they have $5bn of inventory sitting around?
I expect I've missed something somewhere.
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During the Biden tenure the US banned the Hopper-H100 if you recall. Enter the H20 which was a restricted version, produced to meet two core prescriptive limits (for china), bandwidth and operations per seconds. Approx 4 months ago Trump restricted the H20 leaving Nvidia holding $5B of unsold inventory and pretty much ejected them from the China market. Nvidia said at the time 'we are taking a $5.5B charge to our earnings' and would have guided $52B for Q1 if not for the restriction. Instead they guided $43B and made the decision not to include any china revenue in their guide-obviously there were and still are China sales however, immaterial to the mass market which was H20.
Today's news is fantastic. Whether this is a one off, clear the inventory or something else, we don't know.
Nvidia also has the further restricted B30 on deck.
I personally think it is the right thing to do, purely on the basis, China would have found a way to acquire the technology, it's good for relations and US business. It's narrow minded to hurt US business, less tax dollars, less dollars for R&D and force China to innovate faster. Let's remember the US has Blackwell which is 30X more powerful than H20. They ought to lead with this technology, right.
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During the Biden tenure the US banned the Hopper-H100 if you recall. Enter the H20 which was a restricted version, produced to meet two core prescriptive limits (for china), bandwidth and operations per seconds. Approx 4 months ago Trump restricted the H20 leaving Nvidia holding $5B of unsold inventory and pretty much ejected them from the China market. Nvidia said at the time 'we are taking a $5.5B charge to our earnings' and would have guided $52B for Q1 if not for the restriction. Instead they guided $43B and made the decision not to include any china revenue in their guide-obviously there were and still are China sales however, immaterial to the mass market which was H20.
Today's news is fantastic. Whether this is a one off, clear the inventory or something else, we don't know.
Nvidia also has the further restricted B30 on deck.
I personally think it is the right thing to do, purely on the basis, China would have found a way to acquire the technology, it's good for relations and US business. It's narrow minded to hurt US business, less tax dollars, less dollars for R&D and force China to innovate faster. Let's remember the US has Blackwell which is 30X more powerful than H20. They ought to lead with this technology, right.
@Adam-Kay said in Nvidia News:
Helpful Explanation
Thanks Adam - that was a very helpful explanation. I didn't realise that the excess stock you referred to was of stuff that they were prohibited from selling but the trading of which is no longer verboten.
This move from Trump therefore looks like good news indeed.
Thanks again for the explanation. (If you can persuade Nik to reply to my eMail of this morning then I'll be even more pleased!)
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My take on the approval of the H20. The export controls have not been relaxed/rewritten. This is very much looking like a one time 'clear the inventory'. I believe Nvidia are holding $8B in chip stocks(H20). Going fwd the company has two approved chips:
B30: Employs GDDR7 to comply with export limits (capped at ~1.4–TB/s per U.S. regulations).
RTX Pro 6000D: Also uses GDDR7, with bandwidth estimates ranging from 1.1 TB/s (per some sources)
Chinese customers are fully aware and have ordered at least 2 million 6000D and around 1.5 million B30. This is good news
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If you recall when the H20 'ban' came in, on these very boards we discussed the real possibility of it being:
Used as a bargaining 'chip' re Trump/China trade negotiations. That the $5.5b provision (hit to earnings) would likely be reversed. That sale of compliant GPUs would continue in China.
Going fwd the H20 will not reenter production. It is definitely a clear the inventory one time solution. Export limits are unchanged and Nvidia has two compliant chips to sell, having already secured material pre-orders from Chinese customers. The chips are known externally as:
B30
B40 (RTX pro 6kD)Whilst the internet was panicking we applied sound reason/logic to an untenable situation that would be resolved in time. And here we are. It's nice having a CEO who has a seat at the highest table. It bodes well for the years ahead. The President recognises Nvidia's importance to the US economy and future and will do whatever he can to help them succeed. And just as importantly, Jensen Huang is the consummate diplomat-he is well equipped to manage the relationship imo! ;)(to avoid any doubt I mean 'stay friends')
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Is the news with the link with REE trades with Vhina
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I had to think about that for a mo
Rare Earth Metals and China-have I got that right
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Likely. It was always going to be quid pro quo
It went like this....maybe. Or it could just be satirical
Folks, listen up, nobody makes deals like me, nobody! These H20 GPUs, tremendous, beautiful chips, the best for AI, everyone’s talking about ‘em, fantastic! I told NVIDIA, “You wanna sell to China? I’m the guy who makes it happen!” China-China, they’re desperate, throwing top dollar, big bucks, like it’s a fire sale! I said, “Go ahead, sell ‘em, but make sure they pay through the nose!” And they did, folks, because I’m the master negotiator. Those rare earth metals? Oh, we got plenty, like a glittering Trump Tower of shiny stuff. China’s begging, but I made sure they paid a premium, the best prices, because nobody plays the game better than me. It’s a huge win, absolutely huge, believe me! And Jensen Huang, a very good friend, very smart, but not as smart as me.
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@Adam-Kay said in Nvidia News:
I had to think about that for a mo
Rare Earth Metals and China-have I got that right
